Azerbaijan may cut oil production to increase its cost: minister
Azerbaijan, Baku, Dec.17 / Trend /"Azerbaijan is prepared to cut the oil production by 300,000 barrels per day in the case of OPEC's decision to reduce production volumes," Natig Aliyev, the Industry and Energy Minister, who attends the meeting of OPEC member-countries in Algeria, said to RIA Novosti.
"We have real possibility to reduce output to 300,000 barrels per day: now we obtain 840,000 and will obtain 540,000 in the next months, we will preserve this level of oil production in Azerbaijan", Aliyev said.
OPEC made the decision to reduce quotas on oil production to 2mln barrels
per day since Jan. 1.
Aliyev emphasized that Azerbaijan can support the OPEC's decision about reduction of oil production, and also he did not exclude subsequently of possible entrance of the country to the organization.
According to him, Azerbaijan's joining OPEC will depend on prices on
markets. According to the minister, the existing rate of prices is not valid,
and the decision of cartel must contribute prices would become predictable for
the long-term period.
Azerbaijan considers the oil price in the amount of $65-80 valid, Aliyev added.
"The valid price is in the range from 65 to 80 dollars", said the minister.
The prime cost of oil
production in Azerbaijan is lower than in other countries, in particular,
projects were calculated from the price of $20 per barrel, Aliyev stated.
However, $70 price was laid into the budget of Azerbaijan, and a drop in lower
than this mark can lead to a deficiency of funds. Minister emphasized that this
shortage can be compensated due to the reserves of petroleum fund for the
Aliyev also expressed confidence that the decision of OPEC about reduction in the output will lead to an increase in oil prices.